[isaacdstern]

Congratulations everyone we funded 10,148 deals for a total of $194,650,000 !!!!!

Congrats to all the In House funders on a record breaking year!!

AKB…Lock Box Steve and Licker
BAD…Bart all day
ATM…Arlena Basilio
SLC…Mike Samuels
Arch…Zach Chasin
AD…Aaron Davis-THAT’S MEEEEEEE
Gary-Guiche Lucien
Kevin Ka$h Willian$

A special thank you to Benchmark Merchant Solutions and Micamp Merchant Services

I want to recognize a lot of new reps who joined us this year and are on pace to crush it in 2014

David Singfer
Uclid Aries
Jim Mcneil
Simon Gould
Eli Ghouri
Mark Kern
Delon Phoenix
Jamie Schiff
Avi Dahan
Steve Corlin
Kevin joseph
Lalit Malik
Florin Vicol
Jonathan Aryeh
Julie Siegal
Anthony Saracino



A few Reps had absolutely outstanding years and I would want to recognize them:

Moe Feinstein/Alex Chasin and Henry (Aviv) Boaz all with record years

Juan Monegro-$9.8MM
Andy Mac/Joe/Dru-$24.1MM
LockBox Steve-$11.2MM
Elliott Klein-$12.4MM
Matt Melnikoff $5.9MM
Gary Lucien-$5.5MM
Josh Weiss-$4.5MM
Team Desmond Miller-$7.9MM
Kevin Ka$h William$-$7.8MM
Avi (Abe)(Franklin)(Frank) Franco $7.75MM
Mathieu Chamberlain-$4.9MM
Aaron Deal Dumpster Davis-$5.4MM
Michael Paltrow-$8.4MM



I want to thank all of our outside funders who helped us put up these huge numbers:

A huge thank you to Strategic Funding Source For Funding over $30MM for us in 2013. We have literally co-funded thousands of deals together for well over $150MM over the last 5 years. A special thank you to the management team… Andy, Dave, Adi, Jim. A huge thank you to our Yellowstone team at SFS….Raul Rodriguez, Matt Reiser, Ying Yang, Ines Diaz, Dioselyn Reyes, Roland Burke, Steven Podhorzer, Victoria Aquirre, Norma Reyes and Kathleen Perry and last but not least Sean Underdue the team captain who works the insane hours to make it happen for us…also a huge thank you to the customer service crew down in Virginia!!!

Huge thank you Steven Saffer/Max/Peter and Elvis at Fast Business Funding for funding over 100 deals a month for us…these guys are crushing it!!!

Evan (BIG MACHER) Marmott!!!!

OnDeck Capital…Noel, Michael Barnett, Paul…great year guys!

Capital Stack-David Rubin

Snap Advances-Mike Landau

Everest- Tracy and Scott

FFM-Joe Lerman

Business Backer-David Polinecki

GBR-Tony, Ali and John

Rapid Advance-TJ and mark

Max-Michael

For a-Dan, Jared and Andrew

Main Street-Mitch

Happy Rock-Rick and Luigi


$300MM in 2014 boys and girls….that’s the goal!!

Wishing everyone a happy and healthy new year!

Isaac D. Stern - Managing Partner

[Sean Cash]

congratulations. amazing numbers!

[isaacdstern]

Thanks Sean...appreciate that!

[isaacdstern]

I don't know about the rest of you but so far 2014 has started out extremely strong...

[isaacdstern]

How is everyone else starting off the year?

[Sean Cash]

This time of year is notoriously busy for funding, but it's a different breed of merchants than in other months. Merchants who did not hit their holiday sales expectations tend to pursue funding in January and early february to give them a swift kick in the pants for the new year.

[CO1]

We did 100k so far but we are getting an average 3 a day from me and my other guy just started so lets see.

[isaacdstern]

I think in 2014 will see off the charts growth throughout the industry

[Lendinero]

Congrats, Issac. Every time we have a new sales rep, we show them your holiday vids on youtube. Gets them pumped up!

[isaacdstern]

That's awesome....love it!!

[HeatherF]

This time of year is notoriously busy for funding, but it's a different breed of merchants than in other months. Merchants who did not hit their holiday sales expectations tend to pursue funding in January and early february to give them a swift kick in the pants for the new year.

I know based on our traunch analysis that merchants funded during quarter 1 tend to have a higher default rate than any other quarter

[MCAVeteran]

Do you have data on why they default more? Are they borrowing more to pay taxes which in turn doesn't help their business and causes cash flow issues?

[isaacdstern]

I know based on our traunch analysis that merchants funded during quarter 1 tend to have a higher default rate than any other quarter

I have never heard that before...that's really interesting

[HeatherF]

Yeah the SAS analysis on merchants funded (during Jan especially) had a profitability rate of 48% compared to an average of 83% through the remaining quarters.


Reasons why are multiple factors... as Sean eluded to coming off weak months during holidays when extra inventory was bought with the expectations of high sales and then having to discount merchandise for a loss during Jan and Feb. The taking advances to cover taxes is a factor... but also the seasonal merchants are funded in this quarter with the hopes that they will have the same level of sales as they did last year.

[cashguy]

Very interesting Heather

[HeatherF]

Just keep in mind we are using our payment data and we have different underwriting procedures and guidelines than

[Chambo]

Do you have data on why they default more? Are they borrowing more to pay taxes which in turn doesn't help their business and causes cash flow issues?

define "default" If you equate default with slow pay, then yes. Merchants are using 4th Q #'s and paying in 1st Q, when sales are considerably lower,. These payments strain their cash flow and may even completely wipe out profitability.

If a merchant has to choose between paying rent and staff over MCA...what do YOU think they are going to do?